Glossary
Annualized Return

"Annualized Return" is the investment return in a given time period presented on a yearly basis. Please refer to Section B of the Performance Presentation Standards for MPF Investment Funds for details on the calculation of the Annualized Return.

Constituent Fund (CF)

An investment fund that constitutes or forms part of a MPF scheme. The constituent fund may be comprised of different Fund Classes. Each Fund Class of a constituent fund is displayed and, in effect, treated as a separate investment fund on the platform.

Cumulative Return

"Cumulative Return" is the investment return in a given time period. Same calculation as the annualized fund performance prescribed in Section B of the Performance Presentation Standards for MPF Investment Funds except that no annualisation is needed.

Fund Expense Ratio (FER)

The FER is a ratio that measures the total expenses of an MPF fund as a percentage of the fund's asset value. The FER is historical in that it is based on data from the previous financial period. It does not reflect any increase or decrease in fees, charges or expenses in the current financial period. The FER in the table may also not be the latest available. Users should therefore check the most recent information provided by the trustee or sponsor of any scheme being considered before making a final investment decision.

If you are interested, you can refer to Chapter E of the Code on Disclosure for MPF Investment Funds for details on the calculation of the FER.

Fund Risk Indicator

The Fund Risk Indicator shows the risk of a MPF fund. It is provided in your Fund Fact Sheet and helps you choose the risk you like to take in your MPF investment.

There will also be some time lag between changes in data and its inclusion in this platform. Users should therefore check information against the most recent information available from the trustee or sponsor of any scheme being considered before any final investment decisions are made.

The risk of a fund is important because research suggests that there is a tradeoff between risk and investment return. A fund with higher risk tends to show greater volatility of return than a low risk fund. It also has the potential to offer higher expected return than a low risk fund. Its downside potential is increased similarly. We have prepared a short guide to help you understand what the Fund Risk Indicator shows you.

The figure is calculated as the annualized standard deviation based on monthly rates of return of the fund over a 3-year period. Please refer to Section C of the Performance Presentation Standards for MPF Investment Funds for details on the calculation of the Fund Risk Indicator.

Fund Size

The Net Asset Value of the Constituent Fund on fund basis.

Fund Type

There are six different MPF fund types. The characteristics of each fund type are set out in the table below. The fund type and characteristics of a MPF fund are specified in the fund descriptor in the Fund Fact Sheet.

Fund Type Characteristics
Mixed Assets Fund The fund or a class of units of the fund invests majority of its assets in bonds and equities. The fund type is further broken down into different fund categories according to their normal range of the equity exposure.
The fund categories under this fund type are:
1. 81% to 100% Equity
2. 61% to 80% Equity
3. 41% to 60% Equity
4. 21% to 40% Equity
5. Default Investment Strategy - Core Accumulation Fund
6. Default Investment Strategy - Age 65 Plus Fund
7. Uncategorized Mixed Asset Fund
Bond Fund The fund or a class of units of the fund invests majority of assets in bonds. The fund type is further classified by investment objective of the fund as disclosed in the statement of investment objective and policy.
The fund categories under this fund type are:
1. Asia Bond Fund
2. Global Bond Fund
3. Hong Kong Dollar Bond Fund
4. RMB Bond Fund
5. Uncategorized Bond Fund
Equity Fund The fund or a class of units of the fund invests majority of assets in equities. The fund type is further broken down into different fund categories according to their geographic region.
The fund categories under this fund type are:
1. Asia Equity Fund
2. China Equity Fund
3. Europe Equity Fund
4. Global Equity Fund
5. Greater China Equity Fund
6. Hong Kong Equity Fund
7. Hong Kong Equity Fund (Index Tracking)
8. Japan Equity Fund
9. United States Equity Fund
10. Uncategorized Equity Fund
Guaranteed Fund A guaranteed amount of return of capital of the fund or a class of units of the fund will be paid to holders in future according to the features of the guarantee.
Money Market Fund - MPF Conservative Fund The fund, previously known as the capital preservation fund, is essentially a money market fund investing in Hong Kong dollar based assets such as short-term bank deposits and high quality debt securities. The expenses of the fund are deducted based on a mechanism specified in the regulation.
Money Market Fund - Other than MPF Conservative Fund Money market fund other than MPF Conservative Fund

Launch Date

The date that a Constituent Fund was first made available to scheme members for investment purposes.

Management Fee

Fees paid to one or more of the trustee, custodian, administrator, investment manager (including fees based on fund performance, if any) and sponsor or promotor of a scheme for providing their services to the fund. Generally, these fees are paid out of the Constituent Fund (i.e. management fees payable at CF level).

Constituent Funds (CF) that are invested in Approved Pooled Investment Funds (APIF) and other permissible investment funds may be subject to fees and charges of those underlying funds (i.e. management fees payable at APIF level). Depending on the actual fee structure, fees and charges payable at Constituent Fund and/or underlying funds may be combined (i.e. management fees payable at CF & APIF levels) or disclosed separately in the Fee Table of a scheme.

Management Fee for a DIS Constituent Fund can only be charged as a percentage of the net asset value of the fund and be subject to a statutory daily limit equivalent to 0.75% per annum of the net asset value of the fund which applies across both the fund and underlying funds.

For some MPF Conservative Funds, fees are charged by way of deduction of units in the members' account. Please click here for further details.